The new features in Universal Google Analytics are an awesome way to evolve the way you measure your PPC programs. Take advantage of data imports, exports and clear thinking around the value we create, and you will be a hero to your organization.
This presentation was first given at HeroConf in Austin, TX to a crowd of PPC experts.
Evolving the Way we Measure PPC Program Value with Google Analytics
1. Evolving the Way we Measure PPC
Program Value with Google Analytics
Jeff Sauer
Founder, Knowledge.Land
2. Jeff Sauer | Knowledge.land | @jeffalytics
Your Guide
2
Jeff Sauer
Marketer and Entrepreneur
Knowledge.Land
Minneapolis, MN, USA
Email: jeff@jeffalytics.com
google.com/+JeffSauer
Newsletter: bit.ly/jeffalytics
20. Jeff Sauer | Knowledge.land | @jeffalytics
1) Collect the Right Data
21. Jeff Sauer | Knowledge.land | @jeffalytics
Don’t Let IT Be a Roadblock
• Nerd/IT person as roadblock
22. Jeff Sauer | Knowledge.land | @jeffalytics
Use Google Tag Manager!
Get Google Tag Manager: google.com/tagmanager
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Now We Can Easily Track
Website Analytics Heat Maps
Remarketing Conversion Tracking
Audience Measurement Display Ads
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2) Import Your Cost Data
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Start with Bing Ad Spend
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And Automate Your Bing Data
Upload
Supermetrics Data Uploader: http://supermetrics.com/product/supermetrics-uploader/
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Other Data Needs Developers
Pro Tip: Import
your cost data for
Agency fees, Social,
Email, SEO, PR, etc.
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3) Use Custom Dimensions and
Metrics
Photo Credit: Caneles via Compfight cc
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Add Your Data into Google Analytics
With Universal Analytics you
can create up to 20 custom
dimensions!
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6) Calculate Fully Loaded Costs
Photo Credit: brongaeh via Compfight
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How Profit Should Be Calculated
Revenue
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Subtract Our Ad Spend
Revenue
Advertising
Investment
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Subtract Cost of Selling Each
Product
Revenue
Advertising
Investment
Product
Cost
39. Jeff Sauer | Knowledge.land | @jeffalytics
Subtract Fixed Costs of Business
Revenue
Advertising
Investment
Product
Cost
Fixed
Costs
40. Jeff Sauer | Knowledge.land | @jeffalytics
Now You Have Net Profit
Revenue
Advertising
Investment
Product
Cost
Fixed
Costs
Net Profit
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7) Determine Your True ROI
42. Jeff Sauer | Knowledge.land | @jeffalytics
Here’s an ROI Equation to Use
Gain From
Investment
(Net Profit)
Cost of
Investment
Cost of
Investment
ROI
True ROI Measurement: http://bit.ly/TrueROI
43. Jeff Sauer | Knowledge.land | @jeffalytics
Here’s a Real Life Example
Revenue $82,730 100%
Ad Spend $10,942 -
Return on Ad Spend $71,788 656%
Cost of Goods Sold $62,021 75%
Gross Revenue $9,767 12%
Total Fixed Costs $5,000 6%
Net Profit $4,767 6%
True ROI 44%
44. Jeff Sauer | Knowledge.land | @jeffalytics
That’s a Big Difference!
Revenue $82,730 100%
Ad Spend $10,942 -
Return on Ad Spend $71,788 656%
Cost of Goods Sold $62,021 75%
Gross Revenue $9,767 12%
Total Fixed Costs $5,000 6%
Net Profit $4,767 6%
True ROI 44%
There is a Big
Difference
between tools
and reality!
Learn How To Get This Spreadsheet: http://bit.ly/AdWordsROI
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8) Add in Life Time Value
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Lifetime Value = Long Term
Investment
Revenue $124,095 100%
Ad Spend $10,942 -
Return on Ad Spend $113,153 1034%
Cost of Goods Sold $93,031 75%
Gross Revenue $20,122 16%
Total Fixed Costs $5,000 6%
Net Profit $15,122 18%
True ROI 138%